Wednesday, May 21, 2014

The indices which mattered are still under threat from bears, those that don't, had a good day. The S&P made in roads towards resistance, but didn't do enough to challenge the 'bull trap'. Technicals are a mix of bullish and bearish technicals, and it's hard to set the direction until the trading range is breached to the upside (or down).

Meanwhile, the Russell 2000 struggled to post gains. It remains in close proximity to support and vulnerable to a breakdown. The 'spinning top' candlestick is a typical neutral day - offering no edge to bulls or bears - but given other indices gained, but the failure of this index to do likewise gives more to bears.

The Nasdaq posted gains, but didn't clear the consolidation. The index remains range bound with a down-turned 50-day MA to offer resistance.

Only the Dow made up lost ground: the 50-day MA is again support.

For tomorrow, look to the Russell 2000 for weakness. Other indices are edging bull side, but their bullishness is not as great as Russell 2000 bearishness. If the Russell 2000 breaks, it won't be long before other indices head south.

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Just for Fun..

This clock reached its time on October 19th 2017. This was a forecast for a "Major Market Top". Unfortunately, I can't find the link for the source material (but years ending in "7" was one of the red flags) but I thought it interesting enough to start this countdown clock 2 years ago.